Two polluting manufacturing firms, Company C and Company P Both are known to emit chemicals which only harms those nearby. The MD caused by emissions from Company C is: MDc=200 while the MD caused by emissions from Company P is: MDp=100 MACs are: MACc=400EcMACp=300Ep a. Determine the efficient quantity of emissions for Y and PEc and Ep b. Suppose the regulator uses a tradable permit system to control pollution. They set a cap of E=Ec+Ep. What will be the market price of an emissions permit? c. What will be the quantity of emissions by each firm under the cap from part b ? d. What about the setting makes the tradable permit market inefficient? e. Suppose the regulator instead implemented a uniform standard (no trading) where each firm is allow to emit 2Ec+Ep=2E units, half of the tradable permit cap. How does the deadweight loss from this no-trading policy compare to the tradable permit system